Rich Dad Poor Dad Lessons
Lesson 1: The Rich
Don’t Work for Money
Lesson 2: Why Teach
Financial Literacy?
Lesson 3: Mind Your
Own Business
Lesson 4: The History
of Taxes and The Power of Corporations
Lesson 5: The Rich
Invent Money
Lesson 6: Work to
Learn—Don’t Work for Money
The
Book in Three Sentences
1. Rich
Dad Poor Dad is about Robert Kiyosaki and his two dads—his real father (poor
dad) and the father of his best friend (rich dad)—and the ways in which both
men shaped his thoughts about money and investing.
2. You
don’t need to earn a high income to be rich.
3. Rich
people make money work for them.
The
Five Big Ideas
1. The
poor and the middle-class work for money. The rich have money work for them.
2. It’s
not how much money you make that matters. It’s how much money you keep.
3. Rich
people acquire assets. The poor and middle class acquire liabilities that they
think are assets.
4. Financial
aptitude is what you do with money once you make it, how you keep people from
taking it from you, how to keep it longer, and how you make money work hard for
you.
5. The
single most powerful asset we all have is our mind.
Rich
Dad Poor Dad Summary
· “There
is a difference between being poor and being broke. Broke is temporary. Poor is
eternal.”
· “Money
comes and goes, but if you have the education about how money works, you gain
power over it and can begin building wealth.”
· “People’s
lives are forever controlled by two emotions: fear and greed.”
· “So
many people say, ‘Oh, I’m not interested in money.’ Yet they’ll work at a job
for eight hours a day.”
· “Thinking
that a job makes you secure is lying to yourself.”
· “Intelligence
solves problems and produces money.”
· “You
must know the difference between an asset and a liability, and buy assets.”
· An
asset puts money in your pocket. A liability takes money out of your pocket.
· “Illiteracy,
both in words and numbers, is the foundation of financial struggle.”
· “Money
often makes obvious our tragic human flaws, putting a spotlight on what we
don’t know.”
· “Cash
flow tells the story of how a person handles money.”
· “Most
people don’t understand why they struggle financially because they don’t
understand cash flow.”
· “The
number-one expense for most people is taxes.”
· Higher
incomes cause higher taxes. This is known as “bracket creep.”
· “More
money seldom solves someone’s money problems.”
· “The
fear of being different prevents most people from seeking few ways to solve
their problems.”
· “A
person can be highly educated, professionally successful, and financially
illiterate.”
· “Many
financial problems are caused by trying to keep up with the Joneses.”
· Once
you understand the difference between assets and liabilities, concentrate your
efforts on buying income-generating assets.
· “The
problem with simply working harder is that each of these three levels takes a
greater share of your increased efforts. You need to learn how to have your
increased efforts benefit you and your family directly.”
· “Wealth
is a person’s ability to survive so many number of days forward—or, if I
stopped working today, how long could I survive?”
· “The
rich buy assets. The poor only have expenses. The middle class buy liabilities
they think are assets.”
· “The
rich focus on their asset columns while everyone else focuses on their income
statements.”
· “Financial
struggle is often directly the result of people working all their lives for
someone else.”
· “The
mistake in becoming what you study is that too many people forget to mind their
own business. They spend their lives minding someone else’s business and making
that person rich.”
· “To
become financially secure, a person needs to mind their own business.”
· “Financial
struggle is often the result of people working all their lives for someone
else.”
· “The
primary reason the majority of the poor and middle class are fiscally
conservative—which means, ‘I can’t afford to take risks’—is that they have no
financial foundation.”
· “One
of the main reasons net worth is not accurate is simply because, the moment you
begin selling your assets, you are taxed for any gains.”
· “A
new car loses nearly 25 percent of the price you pay for it the moment you
drive it off the lot.”
· “Keep
expenses low, reduce liabilities, and diligently build a base of solid assets.”
· Kiyosaki
says he owns business that do not require his presence. “If I have to work
there, it’s not a business. It becomes my job.”
· According
to Kiyosaki, real assets fall into the following categories:
o
Stocks
o
Bonds
o
Income-generating real estate
o
Notes (IOUs)
o
Royalties from intellectual property
such as music, scripts, and patents
o
Anything else that has value, produces
income or appreciates, and has a ready market
· “For
people who hate real estate, they shouldn’t buy it.”
· Kiyosaki
generally holds real estate for less than seven years.
· Start
minding your own business. Keep your daytime job, but start buying real assets,
not liabilities.
· When
Kiyosaki says mind your own business, he means building and keeping your asset
column strong. Once a dollar goes into it, never let it come out.
· “The
best thing about money is that it works 24 hours a day and can work for
generations.”
· “An
important distinction is that rich people buy luxuries last, while the poor and
middle class tend to buy luxuries first.”
· “A
true luxury is a reward for investing in and developing a real asset.”
· Kiyosaki’s
rich dad did not see Robin Hood as a hero. He called Robin Hood a crook.
· “If
you work for money, you give the power to your employer. If money works for
you, you keep the power and control it.”
· “Each
dollar in my asset column was a great employee, working hard to make more
employees and buy the boss a new Porsche.”
· Kiyosaki
reminds people that financial IQ is made up of knowledge from four broad areas
of expertise:
o
Accounting
o
Investing
o
Understanding markets
o
The law
· “A
corporation earns, spends everything it can, and is taxed on anything that is
left. It’s one of the biggest legal tax loopholes that the rich use.”
· “Garret
Sutton’s books on corporations provide wonderful insight into the power of
personal corporations.”
· “Often
in the real world, it’s not the smart who get ahead, but the bold.”
· Kiyosaki
sees one thing in common in all of us, himself inc
· luded.
We all have tremendous potential, and we all are blessed with gifts. Yet the
one thing that holds all of us back is some degree of self-doubt.
· In
Kiyosaki’s personal experience, your financial genius requires both technical
knowledges as well as courage.
· Kiyosaki
always encourages adult students to look at games as reflecting back to them
what they know and what they need to learn.
· “Games
reflect behavior. They are instant feedback systems.”“Financial intelligence is
simply having more options.”
· “The
single most powerful asset we all have is our mind. If it is trained well, it
can create enormous wealth.”
· “The
world is always handing you opportunities of a lifetime, every day of your
life, but all too often we fail to see them.”
· Richard
uses two main vehicles to achieve financial growth: real estate and small-cap
stocks.
· “Simple
math and common sense are all you need to do well financially.”
· “The
problem with ‘secure’ investments is that they are often sanitized, that is,
made so safe that the gains are less.”
· “It
is not gambling if you know what you’re doing. It is gambling if you’re just
throwing money into a deal and praying.”
· “Most
people never get wealthy simply because they are not trained financially to
recognize opportunities right in front of them.”
· “Great
opportunities are not seen with your eyes. They are seen with your mind.”
· “You
want to know a little about a lot” was rich dad’s suggestion.
· “Job
is an acronym for ‘Just Over Broke.’”
· “Look
down the road at what skills they want to acquire before choosing a specific
profession and before getting trapped in the Rat Race.”
· “Education
is more valuable than money, in the long run.”
· “The
reason so many talented people are poor is because they focus on building a
better hamburger and know little to nothing about business systems.”
· The
main management skills needed for success are:
o
Management of cash flow
o
Management of systems
o
Management of people
o
The most important specialized skills
are sales and marketing.”
· “To
be truly rich, we need to be able to give as well as to receive.”
· “Giving
money is the secret to most great wealthy families.”
· “The
primary difference between a rich person and a poor person is how they manage
fear.”
· There
are five main reasons why financially literate people may still not develop
abundant asset columns that could produce a large cash flow. The five reasons
are:
o
Fear
o
Cynicism
o
Laziness
o
Bad habits
o
Arrogance
· “For
most people, the reason they don’t win financially is because the pain of
losing money is far greater than the joy of being rich.”
· “Failure
inspires winners. Failure defeats losers.”
· “Real
estate is a powerful investment tool for anyone seeking financial independence
or freedom.”
· “A
great property manager is key to success in real estate.”
· The
most common form of laziness is staying busy.
· “Rich
dad believed that the words ‘I can’t afford it’ shut down your brain. ‘How can
I afford it?’ opens up possibilities, excitement, and dreams.”
o
“Whenever you find yourself avoiding
something you know you should be doing, then the only thing to ask yourself is,
‘What’s in it for me?’ Be a little greedy. It’s the best cure for laziness.”
o
Richard has found that many people use
arrogance to try to hide their own ignorance.
o
“There is gold everywhere. Most people
are not trained to see it.”
o
“To find million-dollar ‘deals of a
lifetime’ requires us to call on our financial genius.”
o
A reason or a purpose is a combination
of ‘wants’ and ‘don’t wants.’”
o
“Most people simply buy investments
rather than first investing in learning about investing.”
o
Richard believes one of the hardest
things about wealth-building is to be true to yourself and to be willing to not
go along with the crowd.
o
“The rich know that savings are only
used to create more money, not to pay bills.”
o
“The sophisticated investor’s first
question is: ‘How fast do I get my money back?’”
o
If Richard could leave one single idea
with you, it is that idea. Whenever you feel short or in need of something,
give what you want first and it will come back in buckets.
o
In the world of accounting, there are
three different types of income:
o
Ordinary earned
o
Portfolio
o
Passive
Comments
Post a Comment